The Study, Based On The Panel Data Of China's Regional Structure Of Financial Expenditure

The economic development of a country or a region should include not only the economic growth but the adjustment of the economic structure in that both the two facts are promoting with each other. In the process of China's rapid growth in economy, the economic growth in every region differs widely. Because of the vast regions of China, the unbalanced development is relatively obvious. The economic growth of the regions has got great progress, compared to the growth 20 years ago, however, the discrepancy is also existing among regions. In particular, the economic gap among the region of East, Middle and West is getting wider, meanwhile the economic of the region of Middle and West is relatively lagged.We can also see such discrepancy in the structure of the local fiscal expenditure, and more and more contradictions and tasks piles to finance, which cause the increasing difficulty in fiscal expenditure. The difficulty is not just in the revenue, and it also exists in the progress of the expenditure, which is much more important. Nevertheless, we always tend to focus on the revenue or the total, but not the expenditure or the structure, which makes the problem of expenditure become tenderer after we further reformed our economic system.The thesis is about the structure problem of local fiscal expenditure, trying to reveal the discrepancy in the expenditure structure according to the contribution of the local fiscal expenditure program to its region's economic growth, aiming to expose the positive role that the adjustment to the structure of local expenditure plays in driving the economic growth. While the difference of the regional economic development has been analyzed, which is caused by the different regional fiscal expenditure structures, the thesis, using the annual data of 30 provinces from 1987 to 2004, analyzes the relation between structure of local expenditure and the local economic growth with panel data model. This study achieves four goals:1. Create a framework for researching local expenditure by absorbing the findings of our predecessor;2. Observe the current situations of the expenditure structure of our nation and the east Middle-west region to find out the problem in the structure of local expenditure;3. Investigate the influence of all local expenditure program on economic growth to find out a way for continuous adjustment;4. Make further explanation to the conclusion from the model with the specific situation of our country.